Government Budget and The Economy Important Questions for class 12 economics Budgetary Deficiet and Its Measures 1. Budgetary Deficit When a government spends more than it collects by way of revenue, it incurs a budgetary deficit, i.e. Expected expense > Expected revenue. 2.Measures of Budgetary Deficit It includes revenue deficit, fiscal deficit and primary … [Read more...]
Important Questions for Class 12 Economics National Income and its Related Concepts
National Income Accounting Important Questions for class 12 economics National Income and Its Related Concepts 1. National Income It is defined as the sum total of factor incomes accruing to normal residents of a country with a given period of time, generally a financial year 2. Normal Residents of a Country These are the residents of a country or are those ‘individuals’ … [Read more...]
Important Questions for Class 12 Economics Concept of Supply and Elasticity of Supply
Theory of Producer's Behaviour and Supply Important Questions for Class 12 Economics Concept of Supply and Elasticity of Supply 1.Supply It refers to various quantities of a commodity that the producers wish to sell at different possible prices of the commodity at a particular point of time. 2.Quantity Supplied It refers to a specific quantity supplied at a particular … [Read more...]
Important Questions for Class 12 Economics Concept of Production Function
Production and Costs Important Questions for Class 12 Economics Concept of Production Function 1.Production Function It studies the functional relationship between physical inputs and physical outputs. It is expressed as Qx = F(L,K) Where, Qx = Quantity of output, F = Function, L = Labour, K = Capital 2.Different Periods in Production Market period It is the period … [Read more...]
Important Questions for Class 12 Economics Aggregate Demand and Supply and Their Components
Income Determination Important Questions for class 12 economics Aggregate Demand and Supply and Their Components 1. Aggregate Demand (AD) The sum, total of the demand for all the goods and services in an economy during an accounting year is termed as an Aggregate Demand of an economy. Aggregate Demand of an economy is measured in terms of the (expected) Total Expenditure on … [Read more...]